HK Property: Marketing feedback: investors cautious and awaiting clearer catalysts

研报英文原文证据摘录

HK Property: Marketing feedback: investors cautious and awaiting clearer catalysts

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HK Property

Marketing feedback: investors cautious

and awaiting clearer catalysts

Industry Overview

Marketing feedback: cautious, awaiting clearer catalysts 09 July 2026

During our recent marketing in HK/Singapore, discussions around Mainland China’s Equity

outbound direct investment (ODI) rules and the recent slowdown in residential Hong Kong

transactions remain front and center, while expectations of US rate hikes and a volatile Real Estate/Property

Hang Seng Index have done little to improve sentiment. As a result, many investors have Karl Choi, CFA >>

reduced exposure to HK developers and prefer to stay defensive until there is clearer Research Analyst

evidence of a sustained recovery in residential transactions. That said, most do not Merrill+852 3508Lynch3108(Hong Kong)

expect a drop in HK home prices. Stocks most frequently discussed include HKL karl.choi@bofa.com

(potential acquisitions via SCPREF), Link (new CEO, asset disposals, and share buybacks), Fan Tso, CFA >>

Research Analyst

CKA (special dividend in 1H26 and long-term group restructuring potential), WREIC Merrill Lynch (Hong Kong)

(tenant sales and hotel redevelopment), HLD (farmland resumption), SHKP (wide range +852 3508 2875

fan.tso@bofa.com

of DPS growth expectations), and NWD (rights issue risks), broadly in that order. We

continue to prefer landlords including HKL and Link. For investors expecting a residential

revival, we like HLD given its high beta and potential recovery in HK DP margin. See glossary of abbreviations on

Mainlander buying appetite - dented or not? page 2.

Most major HK developers believe the new ODI framework has had no material impact

on high-end Mainland homebuyers so far.